VW is burning through $2.2B a week as virus halts production

  1. Welcome to GM Inside News Forum Ė General discussion forum for GM

    Welcome to GM Inside News Forum - a website dedicated to all things GM.

    You are currently viewing our forum as a guest, which gives you limited access to view most discussions and access our other features. By joining our community, at no cost, you will have access to post topics, communicate privately with other members (PM), respond to polls, upload content and access many other special features. Registration is free, fast and simple, Join GM Inside News Forum today!
     
Page 1 of 2 12 LastLast
Results 1 to 15 of 17

Thread: VW is burning through $2.2B a week as virus halts production

  1. #1
    6.2 Liter LS3 V8
    Join Date
    Mar 2013
    Posts
    3,356
    Thanks
    215
    Thanked 796 Times in 612 Posts

    VW is burning through $2.2B a week as virus halts production


    Demand in China is picking up again but production is only at half the level prior to the crisis, Diess said



    FRANKFURT -- Volkswagen Group may have to cut jobs if the coronavirus pandemic is not brought under control as the automaker is still spending about 2 billion euros ($2.2 billion) a week, CEO Herbert Diess told German TV channel ZDF.

    VW is not making any sales outside of China and is looking for ways to resume production elsewhere that wouldn't endanger its staff, Diess told the Markus Lanz talk show on Thursday.

    "We are not making sales or revenues outside of China," Diess said, adding that VW still had to cover a high level of fixed costs of "around 2 billion euros a week."

    "We need to rethink production. We do not yet have the discipline that we had in China at our German locations," he said. "Only if we, like China, Korea or other Asian states, get the problem under control then we have a chance to come through the crisis without job losses. It requires a very sharp intervention," Diess said.

    Demand in China is picking up again but production is only at half the level prior to the crisis, he said.
    The automaker working on ways to resume manufacturing with workers maintaining safe distances from one another, including by stepping up hygiene and disinfecting, Diess said.

    VW employs 671,000 people and has 124 factories around the world of which 72 are in Europe, with 28 in Germany alone. It suspended production in Europe earlier this month because of the pandemic.

    Refinancing pressure
    VW's Chief Financial Officer, Frank Witter, called on the European Central Bank (ECB) to accelerate purchases of short-term debt, the Financial Times reported on Friday.

    He said the ECB should send "clear signals" and purchase the short-term debt, which often matures in as little as six or nine months, "as soon as possible."

    The ECB said last week it would prop up markets, including through the purchase of commercial paper, as part of a 750 billion euro plan to boost asset purchases to contain the financial fallout from coronavirus.

    It remains unclear whether the ECB has started buying commercial paper. VW is one of Europe's most regular corporate issuers of commercial paper.

    "There's a lot of pressure on the incoming money flow," said Witter. "We have different diversified funding sources available but not all of them are as liquid as they were."

    VW has the capacity to issue up to 15 billon euros of commercial paper under its main funding program, with another 5 billion euros earmarked for short-term debt in Belgium.

    The company's ringfenced financial services division has a separate commercial paper program with a 2.5 billion euro limit.
    Witter said Volkswagen, which has yet to tap bank credit lines worth in excess of 20 billion euros, considered those facilities only as a back-up for when capital markets are shut.

    In a separate interview with German paper Boersen-Zeitung, Witter said VW did not see the need to tap state aid to weather the crisis.

    VW passenger car sales were down 40 percent in March, Witter told the newspaper, adding that the company was reviewing whether its annual meeting could take place on May 7.

    LINK
    OLDSMOBILE - "Start Something"

    100 MPG Chevrolet Silverado E-REV - Fleets only still waiting.
    Hidden Content
    Cut the dependance on Arab oil, cut the trade deficit in foreign oil.

    Life is to short - drive live your dream

  2. Remove Advertisements
    GM Inside News
    Advertisements
     

  3. #2
    6.2 Liter LS9 Supercharged V8
    Join Date
    Dec 2012
    Location
    St. George, Ut.
    Posts
    9,991
    Thanks
    12,825
    Thanked 3,658 Times in 2,370 Posts
    My Ride
    2016 Nissan Rogue SV AWD

    Re: VW is burning through $2.2B a week as virus halts production

    OUCH !!! or maybe more like !!!

  4. #3
    News Contributor BlackGTP's Avatar
    Join Date
    Jul 2008
    Location
    Connecticut
    Posts
    14,855
    Thanks
    6,547
    Thanked 9,111 Times in 4,453 Posts
    My Ride
    2013 Cadillac ATS - Black

    Re: VW is burning through $2.2B a week as virus halts production

    It isn't just VW, all companies (except for Costco, grocery stores, etc) are bleeding cash. This lockdown can't be sustained indefinitely - the economy and Coronavirus are extremely intertwined, one can't be addressed without the other.

  5. The Following User Says Thank You to BlackGTP For This Useful Post:

    1958carnut (03-27-2020)

  6. Remove Advertisements
    GM Inside News
    Advertisements
     

  7. #4
    Chevrolet VOLT Premium Member
    Join Date
    Feb 2010
    Location
    The land of the hethan
    Posts
    10,819
    Thanks
    1,532
    Thanked 3,857 Times in 2,501 Posts
    My Ride
    The coffin on wheels
    Unless they can contain the spread of the virus, lock downs will increase until and after it peaks.
    You only have to see what happened with Spanish flu to realise what happens when folks think
    that they've beaten the bug, let down their guard and the numbers climbed to a second higher peak.

  8. The Following User Says Thank You to jpd80 For This Useful Post:

    richmond2000 (03-28-2020)

  9. #5
    R2-D2 Astromech Droid Premium Member mbukukanyau's Avatar
    Join Date
    Dec 2003
    Location
    Carlsbad Commiefornia
    Posts
    30,369
    Thanks
    5,243
    Thanked 7,463 Times in 3,609 Posts
    My Ride
    2013 Traverse | 2018 Fusion

    Re: VW is burning through $2.2B a week as virus halts production

    They should pay the emissions fine before they go under. This China Wuhan virus will ravage world economy

  10. #6
    3.6 Liter SIDI V6 tripowergto Jan2003's Avatar
    Join Date
    Jan 2017
    Location
    Rockin' Rowland, PA
    Posts
    1,017
    Thanks
    640
    Thanked 1,265 Times in 532 Posts

    Re: VW is burning through $2.2B a week as virus halts production

    Quote Originally Posted by mbukukanyau View Post
    They should pay the emissions fine before they go under. This China Wuhan virus will ravage world economy
    Perhaps VW cheated the virus test cycle?
    2018 Hot Wheels 2SS Camaro Conv ~ 2016 2LT Corvette 7spd ~ 2017 Camaro RS V6 6spd ~ 2014 Chevy Volt(traded) ~ 2009 Pontiac G8 GT ~ 2002 Firebird Formula 6spd

  11. #7
    R2-D2 Astromech Droid Premium Member mbukukanyau's Avatar
    Join Date
    Dec 2003
    Location
    Carlsbad Commiefornia
    Posts
    30,369
    Thanks
    5,243
    Thanked 7,463 Times in 3,609 Posts
    My Ride
    2013 Traverse | 2018 Fusion

    Re: VW is burning through $2.2B a week as virus halts production

    Quote Originally Posted by tripowergto Jan2003 View Post
    Perhaps VW cheated the virus test cycle?
    Would you trust them to make ya ventilator?

  12. #8
    6.2 Liter LS3 V8
    Join Date
    Mar 2013
    Posts
    3,356
    Thanks
    215
    Thanked 796 Times in 612 Posts

    Re: VW is burning through $2.2B a week as virus halts production

    Quote Originally Posted by mbukukanyau View Post
    They should pay the emissions fine before they go under. This China Wuhan virus will ravage world economy
    LOL yea make sure cheats don't prosper!



    VW are in for a pounding, glad Barra pulled the plug on Europe thats turning out to be a very smart move now, if the European automakers like VW are burning through $2.2 billions a week plus the are getting hit by new European Union C02 based fines every year 9.9 billion Euro fine based on JATO 2018 emissions data, plus the already bankrupt Eurozone is hit with the Coronavirus problem cash strapped already.

    Financial experts are predicting the already bankrupt Eurozone countries will enter a 5 year depression won't be buying any new cars most Italian companies will be emerging from Coronavirus bankrupt needing expensive bailouts, it's people will up to their eyeballs in debt buying new cars will off thier radar, taxes will have to rise when the lockdown comes to an end.
    OLDSMOBILE - "Start Something"

    100 MPG Chevrolet Silverado E-REV - Fleets only still waiting.
    Hidden Content
    Cut the dependance on Arab oil, cut the trade deficit in foreign oil.

    Life is to short - drive live your dream

  13. #9
    3.6 Liter SIDI V6 tripowergto Jan2003's Avatar
    Join Date
    Jan 2017
    Location
    Rockin' Rowland, PA
    Posts
    1,017
    Thanks
    640
    Thanked 1,265 Times in 532 Posts

    Re: VW is burning through $2.2B a week as virus halts production

    Quote Originally Posted by mbukukanyau View Post
    Would you trust them to make ya ventilator?
    Nope, not even an aspirin, and certainly not any antibiotics.
    2018 Hot Wheels 2SS Camaro Conv ~ 2016 2LT Corvette 7spd ~ 2017 Camaro RS V6 6spd ~ 2014 Chevy Volt(traded) ~ 2009 Pontiac G8 GT ~ 2002 Firebird Formula 6spd

  14. #10
    News Contributor BlackGTP's Avatar
    Join Date
    Jul 2008
    Location
    Connecticut
    Posts
    14,855
    Thanks
    6,547
    Thanked 9,111 Times in 4,453 Posts
    My Ride
    2013 Cadillac ATS - Black

    Re: VW is burning through $2.2B a week as virus halts production

    Quote Originally Posted by tripowergto Jan2003 View Post
    Nope, not even an aspirin, and certainly not any antibiotics.
    I'd trust VW to make a ventilator or aspirin more than I trust China to make them!

  15. The Following 2 Users Say Thank You to BlackGTP For This Useful Post:

    1958carnut (03-28-2020),tripowergto Jan2003 (03-28-2020)

  16. #11
    Chevrolet VOLT Premium Member
    Join Date
    Feb 2010
    Location
    The land of the hethan
    Posts
    10,819
    Thanks
    1,532
    Thanked 3,857 Times in 2,501 Posts
    My Ride
    The coffin on wheels
    Quote Originally Posted by BlackGTP View Post
    Quote Originally Posted by tripowergto Jan2003 View Post
    Nope, not even an aspirin, and certainly not any antibiotics.
    I'd trust VW to make a ventilator or aspirin more than I trust China to make them!
    A cheap knock-off of a $25,000 ventillator?

    Would we be more worried if our ventillators had a Chevy or Ford badge? (factory recalls)

  17. #12
    R2-D2 Astromech Droid Premium Member mbukukanyau's Avatar
    Join Date
    Dec 2003
    Location
    Carlsbad Commiefornia
    Posts
    30,369
    Thanks
    5,243
    Thanked 7,463 Times in 3,609 Posts
    My Ride
    2013 Traverse | 2018 Fusion

    Re: VW is burning through $2.2B a week as virus halts production

    Quote Originally Posted by jpd80 View Post
    A cheap knock-off of a $25,000 ventillator?

    Would we be more worried if our ventillators had a Chevy or Ford badge? (factory recalls)
    I have had much better experience with my Chevrolets than I ever had with Toyota.

    I have my first Ford, fingers crossed!

  18. #13
    Chevrolet VOLT eaton53's Avatar
    Join Date
    Aug 2005
    Posts
    10,807
    Thanks
    1
    Thanked 3,495 Times in 1,886 Posts
    My Ride
    1989 Merkur XR4Ti

    Re: VW is burning through $2.2B a week as virus halts production

    Quote Originally Posted by jpd80 View Post
    Would we be more worried if our ventillators had a Chevy badge?
    Nope.
    Mine meets emissions, unlike Brand V.
    If they can make a diesel car that has never been accused of cheating, they can make a good ventilator.
    1989 Merkur XR4Ti
    2014 Carlisle Ford Nationals - Merkur Club of America Preservation Award


    2015 Cadillac XTS Platinum... Princess Buttercup IV
    2015 Chevy Cruze Diesel... Many thanks to VW for making this deal possible.

  19. #14
    R2-D2 Astromech Droid Premium Member mbukukanyau's Avatar
    Join Date
    Dec 2003
    Location
    Carlsbad Commiefornia
    Posts
    30,369
    Thanks
    5,243
    Thanked 7,463 Times in 3,609 Posts
    My Ride
    2013 Traverse | 2018 Fusion

    Re: VW is burning through $2.2B a week as virus halts production

    Quote Originally Posted by eaton53 View Post
    Nope.
    Mine meets emissions, unlike Brand V.
    If they can make a diesel car that has never been accused of cheating, they can make a good ventilator.
    Exactly

  20. #15
    6.0 Liter L76 V8 Rick_VT's Avatar
    Join Date
    Jul 2006
    Location
    Canberra Australia
    Posts
    2,227
    Thanks
    9
    Thanked 243 Times in 132 Posts

    Re: VW is burning through $2.2B a week as virus halts production

    Quote Originally Posted by mbukukanyau View Post
    They should pay the emissions fine before they go under. This China Wuhan virus will ravage world economy
    Like gm payed all their debts off before they went bankrupt??

  21. Remove Advertisements
    GM Inside News
    Advertisements
     

Page 1 of 2 12 LastLast

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
Powered by vBadvanced CMPS v4.1.2